Indonesia's Central Bank, Bank Indonesia (BI), is one of the most attractive workplaces in the country. The bank has successfully lure millennials and ensure almost zero turnover in the workforce.
According to BI Executive Director for Human Resources,?Diah NK Makhijani, Gen Y started to join the central bank in 2005. Approximately 29% of BI personnel in 2013 are millennials, and Makhijani projected the number to be around 50% in 2016. In less than two decades from now, the Gen Y will sit on top positions in the bank.
Similar to other millennials, Gen Y in BI tend to have a lot of burning questions and use critical perspectives upon seeing the world. They are also very tech-savvy and love to pursue education. The latter characteristic, Makhijani said, might have to do with BI's firm image as the institution that facilitate the staff to continue their education.
"BI means education. Since the 1990s people have recognized BI staff as smart, open-minded, fearless scholars who are always ready for debates," Makhijani said.
BI implement rigorous and competitive selection process to determine who will be awarded scholarships. Annually, BI sends 70-80 people to pursue master and doctoral degrees, and the investment may reach up to Rp 10 billion per pax.
BI also pays well and it surely contributes to the fact that millennials stick to their job in the central bank instead of looking for other opportunities.In 2014, fresh graduates may take home around Rp 6 million per month, excluding BI's generous allowances. Monthly, staff can rake Rp 12 million, managers Rp 26 millions, directors Rp 57 million, and the highest positions for career staff, executive directors, Rp 83 million. Politically appointed Deputy Governors are paid up to Rp 169 million, while the Governor will be rewarded Rp 199 million every month.
Although much higher than the salary in commercial banks, BI's handsome pay is considered normal for an agency that deal with trillions of rupiah. It is an incentive for the employees to work well and to avoid temptations to do unlawful activities. Furthermore, the central bank uses the great salary to prevent the staff from resigning, because BI needs the best human capital Indonesia can offer.
A clear and relatively smooth career path is the third pull factor for Gen Y. Once a person passed the selection process and went through the internal education period, BI will put he or she in place and, if everything went well, the only direction to go is up. Fresh undergraduates are usually first positioned at G3 level (assistant manager), and the next levels are G4 (manager), G5 (assistant director), G6 (deputy director), G7 (director) and G8 (executive director).
Makhijani said employees usually spent around four years from G3 to G4, but millennials might think it would be too slow. Therefore, BI has changed its regulation to enable high achievers to be promoted after two years.
A good chance of higher education, great salary and clear career path are three factors BI uses to lure and nurture the Gen Y. It is only natural that the average annual employee turnover in the central bank is less than one percent.